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PLEASE HELP READ THE INFORMATION CAREFULLY Ramort Company reports the following cost data for its single product. The company regularly sells 20,000 units of its

PLEASE HELP READ THE INFORMATION CAREFULLY image text in transcribed
Ramort Company reports the following cost data for its single product. The company regularly sells 20,000 units of its product at a price of $60 per unit. If Ramort doubles its production to 40,000 units while sales remain at the current 20,000-unit level, by how much would the company's contribution margin increase or decrease under variable costing? $ $ 10 per unit 12 per unit Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead per year Selling and adminstrative costs for the year Variable Fixed Normal production level (in units) $ 3 per unit $ 40,000 $ 2 per unit $ 65,200 20,000 units Would the income be different if using variable costing instead of absorption costing? RAMORT COMPANY Variable Costing Income Statement (Partial) Production volume (units) 20,000 Sales volume (units) 20,000 40,000 20,000 Sales Variable costs Under variable costing, can a company increase its net income by increasing production

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